Oil once again topped $100 a barrel and stock markets dipped, after the US said it would blockade ships in the Strait of Hormuz following unsuccessful peace talks with Iran.

US President Donald Trump said the naval embargo would target maritime traffic entering and leaving Iranian ports, stepping down from an earlier threat to blockade the whole waterway.

A BNP Paribas analyst wrote that “increased uncertainty over potential end-game scenarios” was driving investors towards safer trades, hence the fall in Asian and European markets and US futures, and a rise in bond yields.

The impact was limited, however, suggesting that markets “have reached peak uncertainty,” one analyst told CNBC, largely pricing in geopolitical risks and unpredictable White House statements.